• MAY 31, 2000

IT funds paint a sorry picture as returns crash by 30%

The performance of software funds over the past 3 months has been rather dismal, and thatís putting it mildly. The 3-month returns of all IT funds have declined by at least 30% over the last 3 months.

The technology, media, telecom (TMT) bloodbath in the stock markets has taken its toll on software funds. A study conducted by personalfn.com reveals that all software funds with a minimum 3-month history have registered an alarming fall of over 30%. The table below says it all.

IT Schemes
NAV (Rs) 3-month
Chola Freedom Tech.
Scheme (Cum.)
14.0 -32.0%
Tata IT Sector Fund 10.6 -45.2%
UTI Sector Fund - Software 18.3 -46.4%
Birla IT Fund (Gr.) 17.5 -46.4%
KP Infotech
Fund (Gr.)
24.1 -48.7%
Alliance New Millennium (Gr.) 7.0 -51.9%
Magnum Sector Funds - IT Fund 12.5 -56.0%
IL&FS eCOM (Gr.) 5.4 -60.2%

Out of the 8 IT funds listed above, as many as 7 have witnessed an erosion of over 45% in their NAVs, with 3 of those 7 funds registering a decline of over 50%! And this only includes IT funds that are at least 3 months old. There are other IT funds with a history of less than 3 months and they have fared no better, as indicated by the table below.

Open-ended IT Schemes NAV (Rs) 1-week 1-month growth
K Tech 6.9 -4.6% -12.6%
Pru ICICI Tech 5.1 -5.4% -22.7%
DSP ML Technology.com 7.5 -8.9% NA

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